San Francisco Apartment Association
October 2008

SFAA News — October 2008

New Acting Head of DBI
The Building Inspection Commission, the policymaking and supervisory body that oversees the San Francisco Department of Building Inspection, convened a Special Commission Meeting and voted unanimously to appoint Vivian L. Day as acting DBI director to replace Isam Hasenin, who resigned to take a private sector position. Her appointment was effective August 14.

Day managed the City of Alameda Permit Center for 20 years prior to joining DBI as Manager of Permit Services in August 2007. She has a BA in public administration from the University of San Francisco, numerous technical certifications and a wide range of International Code Committee credentials. Day is also a Certified California Building Official. Part of the new executive management team brought into DBI last year by Hasenin, Day participated fully in the Business Process Reengineering review and is actively managing implementation of many of its 200 recommendations. She also played a key role in the new DBI fee tables just approved (see article on page 8 for more information on the new fees) to ensure that the department recovers its costs.

“I’m honored to accept the commission’s appointment, and share the exciting reform vision provided by the commission, the mayor and the Board of Supervisors,” Day said in a statement. “We will continue to move forward to take the practical steps required to make DBI more efficient, transparent and customer responsive, as well as to make our review and approval process more predictable. I’m proud to be part of DBI, and give you my commitment that we are on track to utilize fully the many talents of our dedicated staff, and to continue DBI’s delivery of quality building safety services.”



Rent Board Fee Set at $29
The San Francisco Rent Board fee (half of which may be passed on to the tenant) has been increased slightly to $29 for the 2008-2009 tax year. Previously, the fee was $26. The new fee for single-room occupancy hotels is $14.50, half of which may be passed on to hotel room guests. The fee is billed to the landlord each year on the property tax statement, and the law permits the landlord to collect a portion of the Rent Board fee from those tenants in occupancy as of November 1 of each year.


Thanks to All Our Trade Show Sponsors
On September 22, 2008, SFAA held its annual boutique trade show at Fort Mason. SFAA’s Tropical Blast Trade Show covered all facets of the multifamily housing industry and was open to the general public. SFAA would like to thank everyone who participated in our annual trade show, especially our Big Kahuna Sponsors (listed on our cover) and our Aloha Sponsors: Wiegel & Fried, LLP; Bornstein & Bornstein; American Marketing Systems; Flynn Williams, LLP; Marcus and Millichap; P.W. Stephens; and Burr, Pilger & Mayer.

SFAA would also like to thank all the professionals who provided San Francisco’s rental housing industry with top products and services. The free property management classes held prior to the event also provided a wealth of information. Check out the November issue of this magazine for pictures from the event. We hope to see everyone next year!


Strict Green Building Codes Signed Into Law
Most new and renovated residential buildings in San Francisco will now have to meet stringent green building codes, thanks to new regulations recently signed into law by Mayor Gavin Newsom. The new codes focus on water and energy conservation, reducing carbon emissions, recycling and building materials. They will be phased in by 2012. Large residential buildings will be evaluated under the Leadership in Energy and Environmental Design rating system, while smaller buildings will be allowed to meet less-stringent GreenPoint ratings.


Employers Must Now Create Commuter Options
The San Francisco Board of Supervisors recently passed a new measure that makes employers more responsible for their employees’ commuting options. Any business with more than 20 workers must establish a program that will promote transit in one of three ways: free transit passes or vanpool services; employer-provided door-to-door shuttles or vanpool services; or employee-created pretax commuter accounts.

The first two options come at a cost to employers, but the pretax account would not cost employers anything and would save commuters 40% on their transit costs. San Francisco is the first city in the country to pass such a law.


Second Annual SFAA Trophy Awards November 13
SFAA’s second annual Trophy Awards will be held at the Palace Hotel on November 13, 2008. Categories include: Best Independent Owner, Best Resident Manager, Best Property Management Firm, Building of the Year, Best Green Building and Best Residential Amenities. The nomination form can be found here. To get involved with the 2008 Trophy Awards or sponsor the event, contact SFAA Education and Events Director Vanessa Khaleel at
vanessa@sfaa.org or 415-255-2288.


Sharp Rent Increases in San Francisco
San Francisco is among the top areas for rising rents nationwide, according to a recent rental survey from Marcus and Millichap. The survey shows that San Francisco saw a nearly 10% increase and has an average rent of nearly $2,000. The average year-over-year increase nationwide is only 2.5%, according to Real Facts.

The surrounding areas also showed rent increases a good deal higher than the national average. The average rent in San Mateo County for the second quarter of 2008 is $1,786, an 8% increase from the same quarter last year. Santa Clara’s numbers were nearly as impressive, with a 7% rise.

Vacancy was also down, with Santa Clara boasting the Bay Area’s lowest vacancy rate at 2.7%. San Mateo and San Francisco both had about a 4% vacancy rate. The Marcus and Millichap survey included buildings with five or more units and averaged rents from studios to four-bedroom units.